The updated Investment Plan of Energijos Skirstymo Operatorius for the following 10 years has been approved

ESO is going to invest into safeguarding of reliability and efficiency of the network of electricity and gas, network’s automation, instillation of smart solutions, and enabling of effective market in 2020-2029. The company provides detailed information about the planned investments in the announced investment plan for the next 10 years*.

ESO plans to allocate the investments of 1,91 billion euros** in 2020-2029 to increase the network’s reliability, durability and smartness, and to connect new users in 2020-2029. The planned investments will be directed into two main programmes according to the investment priorities:

Network’s reliability and efficiency. This programme intends to safeguard continuous and qualitative energy distribution by the network of electricity and gas safe for environment. One of the most important tools of this programme is replacement of airways of electrical grid by underground lines. The priority will be given to replacement of unreliable and emergency airways, wooded territories and solutions, how to improve voltage quality. Besides, unreliable steel pipes of natural gas will be reconstructed, and other unreliable elements of the network of electricity and gas will be replaced and reconstructed. In order to accelerate restoration of energy supply after the failures, it will be continued to install the equipment that ensures the grid’s automation and management. In addition, advanced and innovative solutions will be installed in order to safeguard the network’s quality and to respond to the growing flows of distributed generation in the ESO network.

Market’s enabling and customer’s experiences. This programme is meant to enable the transformation and development of electricity market and to promote activeness of the customers in selection and changing of the energy supplier. Besides, big attention will be given to integration of generation of renewable sources into the network and development of flexible services. It is especially important to make this change sustainable, so that it would safeguard achievement of the set goals and the network’s efficiency; thus, the advantages of production and consumption in the same place will be taken into consideration. The main tool of this programme is installation of smart meters. This technological solution will ensure accuracy and timeliness of data in the ESO network, will create preconditions for more effective investments, and will enable the market to create and provide services of higher quality to users.

“Long-term planning of activities is considered to be good practice of the companies that are managing infrastructure. We attempt to set clear (with regard to time and priorities) investment directions and goals for ESO for 2020-2029, as well as planned results of the investments and expected benefit for the customers, Lithuania, and the distribution network. We will continue to endeavour at sustainable and long-term balance between the regulatory financing and the network’s reliability, efficiency and smartness,” – said Mr. Mindaugas Keizeris, CEO and Chairman of Executive Board of ESO.

While implementing the planned projects, ESO is going to invest own and borrowed resources. The scope of investments will also depend on the regulatory environment that ensures sustainability of financing of ESO activities. The investment projects provided in the investment plan will be coordinated with the National Energy Regulatory Council in accordance with the legal acts. The ESO investment plan should be updated every year.

* This investment plan elaborates strategical investments of ESO in order to achieve the strategical goals provided in the strategies of ESO and Ignitis Group. 10 YIP approved in July 2019 provided the investments in the scope of 1,83 billion euros. While implementing the investment plans, an investment plant for the next 3 years is prepared and updated every year (it should be announced every quarter). It defines more clearly the investment scopes and results of the next period, without moving far away from the strategies of the Company and Ignitis Group and the strategical goals provided in the National Energy Independence Strategy.

**ESO investment plan for 2020–2029 is not a commitment to invest. Making of particular decisions about goals listed in the investment plan and their implementation (including the scope and time of projects, financing mode and other aspects) will depend on external and internal economic, legal and other factors. All the decisions will be made only upon assessment of all the significant circumstances and in accordance with the requirements and procedures established in the legal acts.